Switzerland says oil supply 'guaranteed' as price volatility puts emergency reserves in focus

GENEVA

Swiss authorities said the country's oil supply remains secure as energy markets face heightened uncertainty amid the escalating war in the Middle East.

Remarks from the Federal Office of Energy (SFOE) and the Federal Office for National Economic Supply (FONES) came as G7 countries recently discussed the impact of the Iran conflict, signaling a readiness to stabilize global energy markets.

The SFOE observes the situation on the global oil market, Brigitte Mader, from the media and communication unit of the federal office, told Anadolu in a written statement.

"For the time being, supply is guaranteed,” she underscored.

The FONES also said they are closely monitoring developments, adding that the country has "appropriate measures" to address a possible supply shortage.

“The stakeholders of the Economic National Supply organization, which also includes other federal offices such as the SFOE and economic actors, are monitoring the situation," Thomas Grunwald, a FONES spokesperson, told Anadolu in a written statement.

Noting that they are also in contact with international organizations such as the International Energy Agency, Grunwald said contingency measures have already been prepared in case supply disruptions occur.

"Appropriate measures have been prepared in case of a supply shortage," he said. "If necessary, the Confederation can release the compulsory reserves."

Switzerland maintains mandatory strategic reserves designed to ensure energy security during potential market disruptions.

"These reserves cover national needs for 3 to 4.5 months depending on the petroleum product,” the spokesperson said.

According to FONES, Switzerland maintains obligatory reserves of gasoline, diesel, extra-light fuel oil, and extra-light fuel oil used to supplement gas supplies covering around 4.5 months of demand, while kerosene reserves cover about three months. The system also includes complementary reserves of uranium bars used to recharge two nuclear reactors.

"Mandatory reserves are only used to support the market when it is no longer able to guarantee supply," Grunwald said. "Currently, Switzerland's supply of petroleum products is secure."

Brent crude prices surged after the Iran conflict began on Feb. 28, rising above $114 per barrel and reaching as high as $120 on Monday. However, prices later eased after US President Donald Trump said the war could end soon and suggested the US could take control of the Strait of Hormuz, with Brent falling below $84 per barrel.

Analysts warn prices could still climb to $150 per barrel if military strikes in the Middle East continue and supply disruptions persist.

Iran effectively closed the Strait of Hormuz around March 1. The strategic waterway normally handles about 20 million barrels of oil shipments daily and roughly 20% of the global liquefied natural gas trade.